PNC has increased the signup bonus on the Cash Rewards Visa card to $200 after $1,000 spend (previously $100) within the first three billing cycles. You can see that offer on PNC here.
Additionally, there is an in-branch offer which will offer double cashback during the first year. PNC will automatically post any earned double cash back to your account one year after opening.
Offer is valid 9/6/23 – 11/6/23
You can try calling into a banker at a PNC branch to see if they can process the branch offer over the phone, just make to get confirmation that it’s for the double cash back offer.
You can see an image of the offer on this website.
Card Details
No annual fee
Sign up bonus of $100 after $1,000 in purchases
Card earns at the following rates ($8,000 annual cap on the 2%/3%/4% categories):
4% cash back on gas purchases
3% cash back on dining purchases
2% cash back on grocery purchases
1% cash back on all other purchases
Introductory 0% APR on balance transfers for the first 12 billing cycles following account opening when the balance is transferred within the first 90 days following account opening
You can redeem for cash back when you have $25 or more in your account
Applications restricted to the following states: AL, DC, DE. FL, GA, IL, IN, KY, MD, MI, MO, NC, NJ, OH, PA, SC, VA, WI, WV
Read our full review here.
Our Verdict
The $200 signup bonus can be done online, and for the hassle of going in branch you’ll hopefully be able to get this offer with the double cashback. If someone can max out the $8,000 on gas, that would get you an extra $320 in cashback (that’s in additional to the generous 4% regular earn rate on gas).
PNC branches are around in many states, listed above. I can see this being a nice deal for someone who can max out the gas category, and possibly even for the other categories. Some people might also consider signing up for the online offer to get the $200 signup bonus. The ongoing rate of of 4% on gas is pretty nice too, irrespective of any signup bonus.
If you’re in the market for purchasing a new home or taking on a business loan or personal loan, you’re likely finding it difficult to score the almost-2% APR we saw in 2020. That’s becausethe Federal Reserve has been hiking interest rates since March 2022 in an effort to cool inflation.
“The Fed has two objectives: To keep inflation low, their current obsession, and to keep unemployment low, which is of current lesser concern,” says Amy Hubble, a certified financial planner who has a Ph.D. in consumer economics. “In practice, this means they lower rates to incentivize growth and hiring, and raise rates to combat inflation when the economy gets overextended. This leads to a policy teeter-totter meant to balance out economic activity in the US.”
So the question remains: When will we finally see interest rates start to come down? CNBC Select asked three experts to give their take on what lies ahead for interest rates. Here’s what they had to say.
What we’ll cover
When will interest rates come back down?
Nobody outside of the Federal Open Market Committee (FOMC), the 12 men and women tasked with setting target interest rates, can predict with any certainty what will happen with rates and when. But that hasn’t stoppedeconomists like Preston Caldwell, a senior U.S. economist for Morningstar Research Services LLC, from making their own educated guesses.
“I think rates will start cutting in early 2024,” Caldwell says. “I think inflation will be nearing the Federal Reserve’s 2% target at that phase and the economy will show signs of slowing, but it’s hard to predict.”
Other professionals in the space echo a similar vision. Hubble points to a recent FOMC report that includes committee members’ projections on gross domestic product (GDP) growth, inflation and the unemployment rate — all factors the Fed will weigh when deciding how aggressively to cut rates.
“All FOMC members believe that rates will be stable or higher through 2023 before slowly coming down in 2024–2025 to settle at a comfortable 2.5% for the longer-term,” she says.
Elliot Eisenberg, the Chief Economist at Graphs and Laughs agrees. “There was a belief that once the second half of 2023 came around, rates would’ve been lower than they were at the end of 2022,” he says. “But it hasn’t come down. These things take a long time to work their way through the economy, so sometime in 2024 sounds about right.”
However, he also warns that it’s hard to believe that we’ll see any interest rate cooling in 2023.
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What should you do when interest rates go down?
Lower interest rates make borrowing money cheaper. That means all other factors (like your credit score) being equal, you’ll generally pay less in interest on anynewstudent loans, personal loans, business loans and mortgages than you would during today’s high-rate environment. Existing loans with a variable rate may also start charging less interest as the Fed lowers interest rates.
That’s why waiting until interest rates come down beforeborrowing money for alarge purchase — like a home — can be easier on your bank account. The current average mortgage interest rate on a 30-year loan is 7.98% even for borrowers witha credit score between 700 and 719. That’s a tough pill for a first-time homebuyer to swallow month after month as they pay their mortgage.
However, if holding off on getting a mortgage isn’t doable for you, make sure you improve your credit score before applying so you can qualify for an interest rate that’s as low as possible. Also consider choosing a mortgage lender that helps you save money throughout the process. Ally Bank, for instance, doesn’t charge any lender fees. And if you qualify for a Navy Federal Credit Union mortgage, you can get a home loan with no private mortgage insurance (PMI) requirements even if you make a down payment of less than 20%.
Ally Home
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, HomeReady loan and Jumbo loans
Terms
15 – 30 years
Credit needed
Minimum down payment
3% if moving forward with a HomeReady loan
Terms apply.
Navy Federal Credit Union
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, VA loans, Military Choice loans, Homebuyers Choice loans, adjustable-rate mortgage
Terms
10 – 30 years
Credit needed
Not disclosed but lender is flexible
Minimum down payment
0%; 5% for conventional loan option
You can also refinance your mortgage down the line during a lower interest rate environment so you can score a better rate on your loan. PNC Bank is one of the most accessible lenders because it has locations in all 50 states and customers can apply both online and in-person.
PNC Bank Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Fixed-rate, adjustable-rate, FHA loans, VA loans and jumbo loans
Fixed-rate Terms
10 – 30 years
Adjustable-rate Terms
Available in periods of 7 and 10 years for a fixed rate, followed by an adjustment period when the interest rate may increase or decrease on an annual or semi-annual basis
Credit needed
Not disclosed
Pros
Refinance available for primary and secondary homes, and investment properties
Offers a wide variety of loans to suit an array of customer needs
Offers refinancing for VA and FHA loans
Available in all 50 states
Online and in-person service available
Cons
Doesn’t offer home renovation loans
Lower interest rates can also have an impact on the APY you earn on your high-yield savings account. While buying a house or taking out a personal loan becomes more affordable during lower interest rate environments, you typically can’t earn as high an interest rate from the money in your deposit accounts.
That’s becausebanks use the Fed rate as a benchmark for yields on savings accounts. So when the Fed rate falls, the interest rate on your high-yield savings account will likely also decrease. Right now, some high-yield savings accounts, like the UFB High Yield Savings Account, are offering more than 5% APY on account balances.
UFB High Yield Savings
UFB High Yield Savings is offered by Axos Bank, a Member FDIC.
Annual Percentage Yield (APY)
Earn up to 5.25% APY
Minimum balance
Monthly fee
Maximum transactions
No max number of transactions; max transfer amounts may apply
Excessive transactions fee
Overdraft fee
Overdraft fees may be charged, according to the terms, but a specific amount is not specified; overdraft protection service available
Offer checking account?
Offer ATM card?
Terms apply.
Even though we’re unlikely to see sky-high APYs stick around after the Fed lowers interest rates, it’s still worth keeping your money in a high-yield savings account even in a lower-rate environment. You’ll still grow your money faster in a high-yield account than with most traditional savings accounts, and it provides a safe, FDIC-insured place to keep your emergency fund.
Bottom line
According to experts, we aren’t likely to see significantly lower interest rates this year, but 2024–2025 is likely to see more progress on that front. Lower rates can make life easier for individuals who have been waiting to buy a house or take on other types of loans, even if savers won’t enjoy the high APYs that thrive in a world of high rates.
Meet our experts
At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed:
Preston Caldwell, a senior U.S. economist for Morningstar Research Services LLC.
Elliot Eisenberg, a chief economist and Graphs and Laughs.
Amy Hubble, a CFP with a Ph.D. in consumer economics.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best mortgage lenders and high-yield savings accounts.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Strong household spending and a resilient labor market could help the U.S. economy avoid a recession in 2024, the American Bankers Association’s Economic Advisory Committee says.
Jamie Kelter Davis/Bloomberg
Resilient household spending and a strong labor market will likely help the U.S. economy avoid a severe recession, according to a new forecast from economists at some of the country’s biggest banks.
The economy is poised to grow at a rate of less than 1% through the second quarter of 2024, the American Bankers Association’s Economic Advisory Committee said Monday. That is low compared with the second quarter rate of 4.1% but well above the dire predictions some economists once harbored for 2024.
“The odds of a soft landing have improved quite dramatically in the near term,” said Simona Mocuta, chief economist at State Street Global Advisors and the chair of the ABA’s committee of economic advisors.
The specter of recession has weighed on banks for close to 18 months, since the Federal Reserve began its campaign of rate hikes in March 2022. The health of the U.S. economy plays a key role in the profitability of banks, so the prospect of a contraction in economic growth raised red flags for banks large and small. The likely avoidance of one of the harsher economic scenarios — a severe recession — is good news for banks, which are also contending with generally tighter profit margins and increasing competition for customers.
Robust consumer spending has helped boost the U.S. economy so far in 2023, the ABA economists noted. Low unemployment and strong wage gains mean households have been able to keep up with many of their spending habits, even as inflation has persisted.
Inflation is also expected to improve in the coming quarters. Big-bank economists anticipate inflation levels to continue to cool to an annualized rate of 2.2% by the second quarter of 2024, close to the central bank’s target rate of 2%.
Although the overall economic picture is brighter, economists warn that there are several lingering threats that could make it more difficult for the U.S. economy and banks alike to grow.
The economists expect businesses to invest less capital in the short term, which could weigh on loan growth at banks. Loan growth at U.S. commercial banks increased 4.5% in the second quarter from a year earlier, according to Federal Deposit Insurance Corp. data.
About 4.4% of the labor forcewill be unemployed by the end of 2024, according to the economists’ forecast. A higher unemployment rate could make it more difficult for laid-off workers to make loan payments, potentially boosting the level of charge-offs at banks.
Credit quality reached historic lows during the pandemic, when many creditors offered grace periods and other breaks to struggling borrowers until the economy got back on track. Analysts expect asset quality to continue to deteriorate, with loan-loss increases spreading beyond the credit card and commercial real estate arenas.
“Investors are eager to learn how much higher net charge-offs are expected to go, especially with the student loan moratorium coming to an end,” Jason Goldberg, managing director and senior equity analyst at Barclays, wrote in a recent research note.
Certain elements of the ABA’s advisory committee’s forecast provide a strong contrast to the details issued when the last forecast was issued earlier this year, when economists believed the U.S. was on the edge of a mild recession.
“The tone of the conversation certainly feels much more positive today,” Mocuta said.
The ABA committee includes economists from some of the country’s largest banks. The group meets twice a year to discuss the economic environment and issue forecasts on economic growth, inflation and the trajectory of interest rate moves.
This year’s committee features representatives from U.S. Bank, Wells Fargo, JPMorgan Chase, State Street, Comerica Bank, BMO, TD Bank, PNC Financial Services, Deutsche Bank, First Horizon, Regions Financial, Northern Trust, Wilmington Trust and Morgan Stanley.
The Federal Deposit Insurance Corporation is suing over a dozen mortgage firms in federal courts to recoup funds over loans they brokered over 14 years ago for Washington Mutual.
The agency in its complaints points to a combined 373 home loans it claims were defective for a variety of reasons, according to a National Mortgage News review of federal court records. While dollar amounts sought aren’t disclosed, some alleged bad underwriting for the loans in question includes five-figure kickbacks and six-figure borrower debts.
The FDIC’s pursuit stems from the fallout of its takeover of WaMu in 2008 during the Great Financial Crisis. Deutsche Bank, a trustee for mortgage-backed securities including the defective WaMu loans, sued the agency in 2009 for indemnification for its securities.
The sides reached a $3 billion settlement agreement in 2017, in which the FDIC issued a receivership certificate, which grants payments to Deutsche Bank as the FDIC recoups WaMu funds. The federal agency began requesting indemnification from mortgage companies in 2021 and none, according to court records, have acquiesced.
“I’m really quite concerned about them taking this stance when they stand in the shoes of those banks who were really at fault, lenders at fault, not the brokers who are just giving them information they asked for,” said Mukesh Advani, a Bay Area attorney representing defendant Cal Coast Financial.
The FDIC sued East Bay-based Cal Coast in August over 21 mortgages the company brokered for WaMu and its subsidiary, Long Beach Mortgage Co.
The FDIC declined to comment last week, while its counsel and other companies either declined to comment or didn’t respond to questions. Two lenders facing such lawsuits, Guild Mortgage and Supreme Lending, have responded to the FDIC’s complaints in brewing court battles.
The 14 firms named in lawsuits in the past 12 months range from small operations to major players, such as Freedom Mortgage. Mortgage companies are being sued for indemnification for as few as 14 loans, in Guild’s case, to as many as 72 loans from Benchmark Mortgage. The Plano, Texas-based Benchmark is scheduled to take the FDIC to trial next June, court records show.
Other businesses the FDIC is suing include American Nationwide Mortgage Co.; Lennar Mortgage; The Mortgage Link; Mortgage Management Consultants; New Jersey Lenders; PNC Bank as successor to smaller firms; Primary Residential Mortgage Inc.; Pulte Mortgage and RealFi Home Funding Corp.
The lawsuits are nearly uniform in length and language, describing the FDIC-WaMu receivership’s losses as arising from inaccurate and/or incomplete loan applications and documentation produced by the brokers.
Each company signed broker agreements with WaMu and its subsidiaries, such as Long Beach Mortgage, in 2004 and 2005, according to exhibits attached to each claim. The FDIC in each case includes an exhibit describing in brief the defects of each loan, the majority appearing to be misrepresented credit or income and debt.
In the FDIC’s lawsuit against Lennar, it alleges one borrower suggested a $60,000 monthly income, six times their actual earnings, while another homebuyer failed to disclose over $660,000 in mortgage debt from a previous property. Lennar last week declined to comment on pending litigation.
Each lawsuit also cites a six-year limitation to file claims following the 2017 Deutsche Bank agreement, and attorneys for lenders said they anticipate more FDIC complaints against lenders.
James Brody, an attorney with Irvine-based Garris Horn LLP, represents Guild and was recently retained by The Mortgage Link in its own FDIC litigation. In regards to the Guild lawsuit, Brody shared a statement this week calling the FDIC’s case “extremely weak” and noted the complaint’s lack of specifics around losses attributable to Guild’s brokered loans.
“We certainly anticipate that there will be a number of motions for summary judgment that will be filed with the Court by most if not all parties that don’t decide to settle out because of their own cost/benefit considerations,” he wrote.
Guild anticipates filing a motion for summary judgment to dismiss the lawsuit, Brody said.
Welcome to the Steel City, a place where bridges connect neighborhoods, innovation thrives, and sports fandom runs deep. If you’re thinking about living in Pittsburgh or already on the hunt for a home in the city, you’re in for a treat. Pittsburgh is a city bursting with character, charm, and countless reasons to make it your new home.
In this Redfin article, we will dive into some fun facts about Pittsburgh, PA, that will make you fall in love with the idea of calling this remarkable place home. So, whether you’re looking to rent an apartment in Pittsburgh or buy a home in the area, get ready to be entertained and enlightened by these 11 fun facts that make this city truly special.
1. The city is an innovation hub
Pittsburgh’s rich legacy of innovation is undeniable, and at its heart lies Carnegie Mellon University, a powerhouse in the world of technology and robotics. But the city’s pioneering spirit doesn’t stop there. In 1920, Pittsburgh proudly became the birthplace of KDKA, the world’s first commercial radio station. And if you’re a fan of that ubiquitous smiley face emoticon used in countless online and text conversations, you have Carnegie Mellon University computer scientist Scott Fahlman to thank for its creation back in 1980.
2. Pittsburgh is the City of Bridges
Pittsburgh proudly wears its title as the “City of Bridges,” and with over 446 of these majestic structures gracing its cityscape, it’s a title well-earned. In fact, Pittsburgh surpasses even Venice, Italy, in the sheer number of bridges within its city limits. The iconic yellow Three Sisters bridges, along with the awe-inspiring vistas from Mount Washington, create some of the most breathtaking and picturesque scenes you’ll ever encounter in the city.
But the story of Pittsburgh’s bridges doesn’t stop there. The Monongahela Bridge, which stands in place of the original Smithfield Street Bridge, holds the distinction of being Pittsburgh’s first-ever bridge. Meanwhile, the trio of Roberto Clemente, Andy Warhol, and Rachel Carson suspension bridges, spanning the Allegheny River to Pittsburgh’s North Side, form a unique ensemble as the world’s only identical threesome of its kind.
3. The city is an education hub
Pittsburgh’s educational landscape extends far beyond Carnegie Mellon University. It’s also home to the renowned University of Pittsburgh, Duquesne University, and a host of other prestigious institutions. Whether you’re pursuing higher education or engaged in research, the city offers a rich ecosystem of learning opportunities.
4. The cost of living is relatively low
Compared to many other major cities, the cost of living in Pittsburgh is relatively low. Housing costs, utilities, and even entertainment expenses are relatively lower, allowing you to enjoy a comfortable lifestyle.
In fact, in August, Pittsburgh saw a median sale price of $260K, nearly $162K below the national median. And, if you’d prefer to live on the outskirts of the city, there are several affordable Pittsburgh suburbs for you to call home.
5. Pittsburgh has a thriving arts and culture scene
Pittsburgh’s cultural scene is thriving. The Carnegie Museums of Art and Natural History, The Andy Warhol Museum, and the Mattress Factory Contemporary Art Museum are just a few of the city’s cultural treasures. The Pittsburgh Symphony Orchestra and the Pittsburgh Ballet Theatre add to the city’s artistic vibrancy.
The city comes alive with an array of events and festivals that celebrate its diverse heritage and artistic spirit. From the Three Rivers Arts Festival to the Pittsburgh International Jazz Festival, there’s always something exciting happening to further enrich your experience in this vibrant city.
6. Pittsburgh is a sports haven
If you’re a sports enthusiast, Pittsburgh is your ultimate destination. The city boasts an ardent fan base that rallies behind the Pittsburgh Steelers (NFL), Pittsburgh Penguins (NHL), and Pittsburgh Pirates (MLB), creating an electric atmosphere at every game held in iconic venues like Heinz Field, PPG Paints Arena, and PNC Park.
Remarkably, Pittsburgh ranks second on the all-time championships list, a testament to its sports legacy, and all of this, mind you, without a professional basketball team. The Pittsburgh Pirates, as the third-oldest MLB team, have been a fixture in Major League Baseball for longer than all but two other teams, making attending a classic Pirates game at the beautiful PNC Park an essential experience for anyone embracing life as a new Pittsburgh resident. Here, you’ll not only witness one of America’s greatest sports but also immerse yourself in the city’s indomitable competitive spirit.
7. The city has appeared in many blockbuster films
Pittsburgh has been a prominent backdrop in numerous blockbuster films, with perhaps the most iconic being “The Dark Knight Rises.” The city’s connection to cinema is particularly fitting, given that it was home to the world’s first movie theater, the Nickelodeon, which opened in 1905.
In addition to Batman’s epic battle, Pittsburgh has graced the silver screen in other major productions, such as “The Avengers” and “Jack Reacher.” From caped crusaders to action-packed adventures, Pittsburgh has become a star in its own right on the big screen, captivating audiences with its unique charm and cinematic allure.
8. There’s a ton of natural beauty
Despite its urban setting, Pittsburgh offers a wealth of outdoor experiences for nature lovers. A network of parks and green spaces, including Frick Park, Schenley Park, and Point State Park, beckon outdoor enthusiasts to hike, bike, and immerse themselves in the natural beauty that thrives in the heart of the city. These green oases provide a refreshing escape, making it easy to balance the hustle and bustle of urban life with the tranquility and serenity of nature, all within Pittsburgh’s welcoming embrace.
9. Pittsburghers speak Pittsburghese
In Pittsburgh, you’ll encounter the distinctive local dialect known as “Pittsburghese.” Here, the Steelers affectionately become the “Stillers,” washing becomes “warshing,” and “yinz” frequently takes the place of “you guys” in everyday conversation.
10. The City of Bridges is a foodie’s paradise
Pittsburgh has transformed into a haven for food enthusiasts, boasting a diverse culinary scene that promises a tantalizing journey for your taste buds. Here, you can relish in iconic dishes like the famed Primanti Brothers sandwiches, savor delectable pierogis, or embark on a global gastronomic adventure in neighborhoods such as Squirrel Hill and Lawrenceville.
Pittsburgh has also left an indelible mark on the beloved foods we all know and love. It’s the birthplace of the Klondike bar, Heinz ketchup, and even the legendary Big Mac, which was invented near Pittsburgh in 1967.
11. Pittsburgh experiences more rain than Seattle
While Seattle, WA, holds a reputation as one of the rainiest cities in the United States, it may surprise you to learn that Pittsburgh actually receives more annual rainfall. Pittsburgh averages 38.3 inches of rainfall each year, slightly surpassing Seattle’s average of 38 inches. So, if you appreciate the occasional rainfall as a refreshing cooldown, Pittsburgh might just be your ideal destination, offering its own unique take on weather and a chance to enjoy those gentle showers.
Fun facts about Pittsburgh: the bottom line
Moving to Pittsburgh opens up a world of possibilities and experiences that are truly unique. The city boasts iconic bridges, a lively cultural scene, a history of innovation, delicious cuisine, vibrant sports, and a welcoming community. As you explore the Steel City, you’ll discover countless reasons to live in Pittsburgh, each one contributing to the city’s undeniable charm.
A new report released today by IHS Global Insight and PNC Financial Services Group revealed that the nation’s housing market as a whole is “slightly undervalued,” but said there was no sign of a bottom.
The so-called “House Prices in America” fourth quarter update found that home prices had fallen a collective 9.9 percent from their 2007 peak, although much more in sand states like California and Florida.
Home prices fell at an annualized rate of 13 percent nationwide and dropped in 92 percent of the nation’s metro areas, with the greatest declines of the current cycle seen in the fourth quarter.
Price contraction has been the worst in the Southwest and Southeast, areas of the country that were deemed the most overvalued.
“When the 330 metro areas were weighted by market value, the U.S. was 8.4% undervalued; when weighted by housing units, the nation was 10.2% undervalued,” the report said.
Extreme overvaluation was only present in one metro area, Atlantic City, NJ, compared to 52 metros that met that description three years earlier; the Pacific Northwest is the only remaining overvalued region.
“We expect prices to decline further through 2009 as consumers remain wary of taking on housing debt in these uncertain economic conditions,” said Jeannine Cataldi, senior economist and manager of IHS Global Insight’s Regional Real Estate Service.
“Markets where the boom was greatest, and the fall the hardest, will be watched carefully for any signals that may indicate a trend towards stability and potential growth.”
During 2008, statewide home price declines exceeded 20 percent in Arizona, California, Florida and Nevada and 10 percent in Maryland, Michigan, Georgia, and Virginia.
Home prices in five metros in California’s Central Valley have slipped to less than half their peaks, while 38 other metros have declined by more than 30 percent.
“In all, 119 metros, more than one third of the total, experienced price declines of more than 10%,” the report said.
IHS attributed the home price declines to a heavy inventory overhang, tight mortgage credit conditions, poor consumer confidence, and mounting job losses.
The study determines what house prices should be, accounting for differences in population density, relative income levels, and historically observed market premiums or discounts.
If you’re looking to stay abreast of the latest mortgage industry news, consider my free e-mail updates!
If you’re on the lookout for a full service online bank, you might come across CIT Bank. Founded in 2009, CIT Bank is now a division of First-Citizens Bank & Trust Company, which is a leading financial institution with more than $218 billion in assets.
The bank offers a variety of products, including savings and checking accounts, CDs, custodial accounts, and home loans. It stands out for its competitive interest rates that you may not find at traditional banks as well as no monthly maintenance fees or monthly service fees.
While there are no physical branches, live chat support on CIT’s website and mobile app as well as automated phone assistance is available 24/7. If you prefer to speak to a CIT representative directly, you can reach them during regular business hours: Monday through Friday, 9 a.m. to 9 p.m. ET, or Saturday from 10 a.m. to 6 p.m. ET.
CIT Bank doesn’t have an ATM network but it will reimburse you up to $30 per month if you incur out-of-network ATM fees. Rest assured that it’s insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 for an individual account or $500,000 for joint accounts, meaning your money will be safe, no matter what happens to the bank. Let’s take a closer look at CIT Bank so you can decide whether it makes sense for your unique situation.
CIT Bank Pros and Cons
Before you move forward and open an account with CIT Bank, it’s a good idea to consider the benefits and drawbacks.
Pros
Competitive rates: Since CIT Bank has less overhead costs than brick and mortar financial institutions, its yields on deposit accounts and several CIT Bank CDs are competitive. It can allow you to make the most out of your hard earned money.
No fees: Unlike other bank accounts, CIT deposit accounts do not have any monthly maintenance fees, or other common fees. You can use the money you save on fees to meet your financial goals faster.
ATM fee reimbursement: CIT Bank reimburses you up to $30 per month for out-of-network ATM fees. This means you can withdraw cash from any ATM without worrying about high costs.
Small minimum deposit requirements: You don’t need a lot of cash to open up CIT Bank accounts. Many. of the accounts only require $100 to start.
24/7 customer service: CIT’s live chat and automated phone support is available round-the-clock. If you have a question or concern, you’ll be able to receive assistance right away.
Cons
No physical branch locations: CIT is an online only bank, meaning there are no branches for an in-person banking experience. If you decide to bank with CIT, you should feel comfortable with online banking and mobile banking.
Limited product selection: Compared to other financial institutions, CIT’s product line is slim as there are no credit cards, car loans, or IRAs. Fortunately, its lineup of checking accounts, savings accounts, custodial accounts, CDs, and mortgages is still impressive.
Low rates on select CD accounts: Some CDs have lower rates than you may be able to find elsewhere. The good news is you can calculate your returns in advance and won’t have to worry about fluctuations in the market.
No checkbooks: CIT’s eChecking accounts do not include checkbooks. However, you can use CIT to pay other individuals and businesses electronically via Zelle, Apple Pay, and Samsung Pay.
CIT Bank Products
CIT Bank offers a variety of products to help you meet different financial goals. Here’s an overview of each of its current offerings.
Checking Accounts
You can open the CIT Bank eChecking account with as little as $100. It’s unique in that it offers interest on your balance. To earn as much interest as possible, you’ll need to keep at least $25,000 in your account.
As an online checking account holder, you’ll get a debit card with chip technology and 24/7 account access. Plus, you’ll be able to deposit checks and make unlimited withdrawals with the CIT Bank mobile app. In addition, you’ll have access to Zelle, Apple Pay, and Samsung Pay. Unfortunately, the eChecking account doesn’t come with paper checks.
Savings Accounts
CIT Bank offers a few CIT Bank savings accounts you might want to explore., including the CIT Bank Savings Connect, the Savings Builder account, and Platinum Savings account. The CIT Bank Platinum Savings account provides an interest rate of up to 12 times the national average.
There are no fees and interest compounds daily so that you can earn as much as possible. All you need is $100 to open this account. This account is ideal if you’d like to meet your savings goals quickly without a lot of effort.
With the CIT Savings Connect account, you can reap the benefits of a great interest rate and enjoy easy access to your funds. Several noteworthy perks of the Savings Connect include an interest rate of up to 11 times the national average, online banking and mobile banking, remote check deposit, and no monthly service fees.
The CIT Savings Builder is a two-tiered CIT savings account with an interest rate that’s twice the national average. As long as you make at least one $100 deposit per month or maintain a balance of $25,000 or more, you can earn a competitive rate on it. Since the Saving Builder account earns daily compounding interest, you’ll be able to maximize your earning potential. Just like the other CIT saving accounts, the Savings Builder doesn’t have any account opening or maintenance fees.
CIT Money Market Account
The CIT Bank money market account is the way to go if your ultimate goal is to grow your savings and stash your emergency fund. With a minimum opening deposit of $100, you can earn more than two times the national average.
In addition, there is no monthly service fee and you can deposit checks and transfer money using the CIT Bank mobile app. In addition, you’ll be able to earn twice the national average. Just like with the other accounts, you may only make six transactions per statement cycle and can deposit checks and make transfers with the CIT mobile banking app.
CDs
Certificates of Deposit (CDs) might be worth exploring if you like the idea of guaranteed returns. CIT offers several types of CDs, including:
Term CDs: Term CDs are traditional CDs that are widely seen at other banks and range from six months to 60 months. With a term CD, you can lock in an interest rate for a certain time period, regardless of what happens to the market. The longer term you choose, the more interest you’ll earn. You’ll need at least $1,000 to open a term CD.
No-Penalty CDs: Most CDs require you to lock up your money for a set period of time. If you’d like to access it before, you’ll have to pay a penalty. A no-penalty CD is exactly what it sounds like: a CD that doesn’t charge a penalty if you withdraw funds before your term is up. It requires a $1,000 minimum opening deposit and you may be able to access your money after seven days.
Jumbo CDs: If you have a lot of cash saved up, a jumbo CD might make sense. It requires $100,000 to open and doesn’t come with any account opening or monthly maintenance fees. Its terms range from two to five years and the longer you keep your money in one, the higher rate you can lock in.
RampUp CDs: RampUp CDs are for current CIT Bank customers with CDs. With a RampUp CD, you can increase your rate one time during your term if CIT Bank raises rates after you have already opened your account. You’ll need to reach out to CIT Bank directly to learn more about what type of rate you might qualify for.
Custodial Accounts
Custodial accounts are opened under the Uniform Transfers to Minors Act (UTMA). If you have a child under 18, a CIT custodial account can help you save money for their future. You’ll serve as the custodian and have complete control of the account until your child turns 18 or a later age that you designate.
You can contribute as much money as you’d like and may not have to pay federal taxes on part of the earnings. With a custodial account, your child may enjoy money for college, a vehicle, home down payment, and other expenses that can steer them toward a bright future.
Home Loans
CIT Loans does offer mortgages but you have to submit your contact information on its website to start the process and learn more about your options. You’ll need to state the value of the home you’re interested in, your desired loan amount, your zip code, and your credit score range. If you already bank with CIT, you may be eligible for two relationship discounts that lead to a lower rate.
Ten percent of your balance in a CIT bank account may give you 0.1% off your rate. If you keep 25% of your balance in a qualifying cit bank savings account, you might lock in a 0.2% discount. Since the CIT website has limited information about its mortgages online, it’s a good idea to fill out the form and request further details.
CIT Bank Fees
As we mentioned above, CIT Bank doesn’t charge any opening fees or monthly maintenance fees. Also, you can open most accounts with only $100. The bank won’t charge any domestic ATM fees and will reimburse you up to $30 per month for any fees you incur for using other ATMs. If you use an international ATM, however, CIT Bank will charge a monthly fee of 1% plus the fee imposed by the ATM provider. Other fees you should be aware of include:
Debit card replacement fee: 100
Overdraft fee: $30
Returned deposit fee: $10
Bill stop payment fee: $30
Outgoing wire transfer fee: $10
CIT Mobile App
With the CIT mobile banking app, you can bank on the go from just about anywhere. The mobile app is versatile so you can use it to log into our accounts via a password or fingerprint. You can also transfer funds between CIT accounts and an external bank account and take a photo to deposit checks.
Plus, the app allows you to check your balances and transaction history, send and receive money via Zelle, and make secure payments with Samsung Pay and Apple Pay. If you’d like, you can sign up for text banking, which will give you the chance to check your account balances and transactions through text. Many reviewers state that the CIT mobile app is very intuitive so you shouldn’t have any trouble using it, even if you don’t consider yourself tech savvy.
CIT Bank Reputation
Before you go ahead and open a CIT Bank account, you might want to know about its reputation. It has an A- rating on the Better Business Bureau (BBB). On TrustPilot, CIT earned 2.3 out of 5 stars due to negative customer reviews.
Most of the negative reviews have to do with poor customer service and difficulty opening deposit accounts. The majority of the five-star reviews praise CIT for a convenient banking experience and fast response times from the customer service team. You can always try out CIT Bank and move on to another financial institution if you’re unsatisfied for any reason.
How to Access Your Money
Even though there are no physical branches, CIT Bank makes it easy to fund your account and withdraw money.
Deposits
You can fund your account through these methods.
Mobile app: With the mobile app, you can deposit checks and make transfers quickly and conveniently.
ACH transfer: The simplest way to fund your account is to transfer funds electronically from your external bank accounts. Note that it may take up to two business days for the money to show up.
Check: You can mail a physical check to CIT Bank.
Wire transfer: CIT Bank accepts funds via wire transfer.
Withdrawals
Here’s how you can make withdrawals:
CIT Savings Connect: The CIT Savings Connect allows you to make up to six withdrawals or transfers per statement cycle. Keep in mind that any withdrawal and transfer requests you submit via mail don’t count toward this limit. The same goes for telephone requested withdrawals and transfers.
ACH transfer: Free ACH transfers between your account and an external bank account are available.
Check: You can call CIT and ask them to mail you a check without paying a fee.
How to Get Started
To open an account with CIT Bank, visit their website and click the green “Open Account” button on the home page. You can complete the application in 5 minutes or less. Be prepared to provide the following information:
Your home address
Your phone number
Your email address
Your Social Security number
You’ll also need to fund your new account. You can transfer funds from an external checking or savings account, wire funds to your new account, or mail a check to the following address: CIT Bank, N.A. Attn: Deposit Services, P.O. Box 7056, Pasadena, CA 91109.
Lastly, CIT will make two test micro-deposit to your account. You’ll receive an email within three business days that asks you to verify them. The bank will process your transaction as soon as you do.
CIT Bank Alternatives
While CIT Bank offers a lot of benefits, it’s not right for everyone. If you decide CIT isn’t the best choice for your unique needs and preferences, consider these alternative options. Some are online banks while others are traditional financial institutions with brick and mortar locations.
Ally Bank
Like CIT Bank, Ally Bank is an online only bank that offers low fees and high rates. Its product lineup includes checking accounts, savings accounts, CDs, credit cards, mortgages, car loans, personal loans, and retirement accounts. Perhaps the greatest benefit of Ally Bank is that it doesn’t charge any fees.
Capital One
Capital One has approximately 300 branches in select states and more than 50 Capital One Cafes that allow customers to open accounts, deposit cash and checks, and hang out. It also offers no-fee access to more than 70,000 ATMs and attractive rates on savings accounts and CDs. This bank might make sense if you want competitive rates but prefer the option of an in-person banking experience that is not available with CIT.
Chime
Chime isn’t a traditional bank or online bank like CIT. It’s a mobile banking app that provides banking services through Bancorp Bank, N.A. and Stride Bank. The Chime checking account comes with exciting perks like automated savings tools, early direct deposits and free access to over 60,000 fee free ATMs across the country. The Chime high yield savings account is also a solid choice thanks to its competitive interest rate and lack of monthly fees as well as minimum balance requirements.
Citibank
Citibank sounds like CIT Bank but is one of the largest banks in the world. It has hundreds of locations in the U.S. and thousands overseas. If you frequently travel abroad for business or pleasure and want access to branches and ATMs, it should be on your radar. It offers a plethora of accounts but they do come with fees. The good news is many of the fees can be waived if you meet certain balance or direct deposit requirements.
Discover Bank
When most people think of Discover, credit cards come to mind first. But Discover is actually an online bank that’s similar to CIT Bank. Its plethora of products include checking and savings accounts, personal loans, student loans, home equity loans, and mortgage refinancing. Discover also offers cash back on debit card purchases and, of course, credit cards with various rewards.
PNC Bank
PNC Bank is a traditional bank with brick and mortar locations. Some of its most popular products are the PNC Standard Savings account and Virtual Wallet, which combines a traditional checking and savings account. PNC also offers numerous CDs and free budgeting tools. It offers online banking, like CIT Bank, plus a robust mobile app.
Huntington Bank
Huntington Bank is a leading bank in the Midwest with branches in states like Ohio, Michigan, and Indiana. It provides checking and savings accounts, personal loans, auto loans, mortgages, credit cards, insurance, and investment options. Other perks include a 24-hour grace period, all day deposits, and online bill pay. You can download the Huntington app and bank on the go, like you’d be able to with CIT.
Bank of America
Known as one of the largest banks in the country, Bank of America has more than 6,000 locations throughout the U.S. Just like CIT Bank, it has a highly rated mobile banking app. In addition to checking and savings accounts, it has a Preferred Rewards program, which comes with perks like higher interest rates, waived fees, and cash back for certain transactions.
TD Bank
TD Bank has a strong presence in the Eastern part of the U.S. It offers many of the same products as CIT, such as personal checking accounts, personal savings accounts, and mortgages accounts. TD stands out for its generous bonuses and minimal fees. We can’t forget its intuitive mobile app, which makes it a breeze to bank on the go.
Citizens Bank
Citizens Bank is a national bank with locations in the New England, Mid-Atlantic and Midwest regions. Just like CIT Bank, it doesn’t charge monthly maintenance fees as long as you meet specific criteria, like making one deposit per month.
Additionally, many accounts are free of minimum balance requirements. In addition, Citizen offers the Peace of Mind overdraft protection program which will send you an alert if you overdraft your account. Other perks include an overdraft fee grace period and early paycheck deposit and early paycheck deposit.
Bottom Line
If you feel comfortable with online banking and would like to take advantage of the best annual percentage yield APY available, CIT Bank is a great choice. You’ll enjoy access to a plethora of products and watch your money work for you. While you won’t get to bank in-person, you can perform pretty much any banking task online or on your mobile phone via the CIT banking app.
CIT Bank FAQs
What types of products does CIT Bank offer?
CIT Bank offers deposit accounts, like checking accounts, high yield savings accounts, and money market accounts. It also provides CDs and home loans.
Who is CIT Bank for?
CIT Bank is a good fit if you’re looking for an online bank with high interest rates and low fees. You’ll be able to open and manage CIT Bank’s savings accounts and checking accounts from the comfort of your own home. If you prefer a traditional bank with physical locations, you might want to explore other options, like Bank of America, PNC Bank, and Huntington Bank.
Is CIT Bank FDIC insured?
Yes, CIT Bank is insured by the Federal Deposit Insurance Corporation. This means that if the bank fails for any reason, the federal government will protect your money up to $250,000 per depositor. The FDIC insurance can give you the peace of mind of knowing your money will be safe and sound, regardless of what happens to CIT.
Do I need a lot of money to open a CIT Bank account?
Each CIT account has its own requirements. However, many of its deposit accounts can be opened with as little as $100. This is great news if you’d like to start your savings journey but don’t have a lot of cash at your disposal.
Is it safe to bank with CIT?
CIT makes security a top priority. If you open an account with the bank, it will be protected with safety measures like antivirus protection, SSL encryption, firewalls, and account monitoring. With CIT, you don’t have to be skeptical about entering your personal information.
Is CIT Bank legitimate?
CIT Bank is a division of First Citizens Bank, which dates back to the 1800s. Plus it’s FDIC-insured.
Where can I go to find CIT Bank’s routing number?
Log into your online account to find your CIT Bank routing number. For online-only accounts, this number is 124084834.
Does CIT Bank have physical branches?
CIT Bank is a digital bank. This means there are no branches and you must do all your banking on your laptop, computer, or mobile device. Many reviewers state that the CIT website and mobile app are very easy to use so you don’t have to worry about a learning curve.
Is CIT Bank compatible with Zelle?
Yes. You can use Zelle to quickly send and receive money through the CIT Bank mobile app. Fortunately, you won’t have to pay any fees to do so as Zelle is free to use.
Should I open an account with CIT Bank?
You might benefit from a CIT Bank account if you’re looking for a financial institution that offers high interest rates and low fees. However, you should feel comfortable with online and mobile banking as you won’t be able to step into a local branch to deposit a check or ask a question.
If you’re a U.S. homebuyer waiting for a return to super-low mortgage rates, don’t hold your breath.
The short-lived era of 3% interest rates for 30-year fixed mortgages is over, and unlikely to return anytime soon — perhaps for decades — says Lawrence Yun, chief economist at the National Association of Realtors.
“One can never truly predict the future, but I don’t see mortgage rates returning back to the 3% range in the remainder of my lifetime,” he says.
That’s because average 30-year fixed mortgage rates of 3% or less were an anomaly related to the pandemic, lasting from about July 2020 to Nov. 2022. Historically, the rates have been closer to an average of 7% over the past 50 years, according to Freddie Mac data.
Why super-low mortgage rates won’t return any time soon
Historically low mortgage rates during the pandemic were “an exceptional measure, during exceptionally uncertain times,” says Yun.
With the pandemic came economic uncertainty not seen since the 2008 financial crisis. Fearing a prolonged recession, the Federal Reserve followed the same playbook it used in 2008, pumping money into the economy to stimulate growth.
As was the case in 2008, the Fed slashed interest rates to nearly 0%, created emergency lending programs and bought government bonds and mortgage-backed securities, otherwise known as quantitative easing.
Since mortgage rates are closely linked to the Fed’s benchmark interest rate and can be driven further down by quantitative easing, the interest on mortgages subsequently hit rock bottom at 2.67% in January 2021.
Congress also passed trillions of dollars in Covid-19 relief and stimulus spending, which helped increase U.S. national debt by roughly 30% between 2020 and 2022, according to Treasury Department data.
However, unlike 2008, the economy recovered quickly and rising inflation soon became a problem. By spring 2021, the year-over-year inflation rate had accelerated beyond the Fed’s benchmark of 2%, forcing the central bank to start raising interest rates again. And with that, mortgage rates rose too.
I don’t see mortgage rates returning back to the 3% range in the remainder of my lifetime.
Lawrence Yun
Chief economist at the National Association of Realtors
As a result of inflation and current federal spending deficits, Yun doesn’t think the Fed is likely to drop interest rates down to nearly 0% again, even in the event of another financial market panic or pandemic.
Other economists who spoke to CNBC Make It agree that homebuyers shouldn’t expect a return to record-low mortgage rates in the near term.
“It’s unlikely that the Federal Reserve will respond with the same breadth and aggressiveness like it did in 2020, as the very low mortgage rates in 2020 were caused by very unique circumstances” related to the pandemic, says Abbey Omodunbi, senior economist at PNC Financial Services.
“I haven’t seen mortgages that low in over 30 years in the business,” says Dottie Herman, vice chair at Douglas Elliman. “It’s highly unlikely we’ll see rates that low anytime soon.”
Where mortgage rates are headed
The current average mortgage rate for a 30-year fixed-rate mortgage is 6.81% as of July 6, slightly lower than its November peak of 7.08%, per Freddie Mac data. (Check out this list of the best mortgage lenders here, from CNBC Select.)
However, many projections are expecting a steady decline over the next year or so.
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If you haven’t heard of PNC Mortgage before, you probably will in the near future.
They’re a rapidly growing depository bank and mortgage lender with 2,600 branches across 19 states nationwide.
PNC is also one of the top 10 largest banks in the United States based on total assets. However, most of their retail operations tend to be in the Midwest and Northeast regions of the country.
But you can still apply for a home loan with the company from just about anywhere in the United States because they let you apply online, by phone, or in person at a branch.
Let’s learn more about PNC to see if they should be included in your home loan search.
Who Is PNC Bank?
A depository bank and mortgage lender with roots in Pittsburgh
The name is based on two former predecessors (Pittsburgh National Corporation and Provident National Corporation)
They acquired National City Mortgage during the housing crisis in 2008 to become a major mortgage player
A top-25 mortgage lender nationally that funded about $36 billion in home loans during 2021
The history of PNC Bank can be traced all the way back to the mid-1800s, though it’s unclear when they first began offering mortgages on residential properties.
But one thing is certain – they’ve been around a while and look to be growing larger as time goes on, especially in the home lending space.
One major catalyst in their growth story had to do with their timely acquisition of National City Mortgage, which was a major home loan lender until the housing crisis hit in the early 2000s.
PNC Mortgage basically reinvented itself with the merger thanks to National City’s large mortgage presence. They were a top-10 mortgage lender up until the crisis.
However, PNC has yet to crack the top-10 lender list themselves, though it’s probably a matter of time if they continue on the same course.
What Does PNC Mortgage Offer?
They offer both fixed and adjustable-rate loan options
Conforming and jumbo loans
FHA loans and VA loans
And home equity loans and lines of credit
PNC Mortgage offers a variety of home loan programs, including typical fixed-rate options like the popular 30-year fixed and 15-year fixed.
Additionally, you can get your hands on three different types of ARMs, including a 5/1 ARM, 7/1 ARM, and a 10/1 ARM.
If you happen to live in a more expensive region of the country, or have plans to buy a mega-mansion, know that they accept jumbo loan amounts up to $5 million. This should satisfy most borrowers out there.
Conventional loan options aside, they offer government home loans as well, including FHA loans and VA loans.
Both government loan options come in 30-year fixed and 5/1 ARM varieties.
PNC also offers three different types of home equity options, including a HELOC, a home equity loan, and a so-called “Home Equity Rapid Refinance.”
All three include a 0.25% interest rate discount when you set up and maintain automatic monthly payments via a linked PNC checking account.
The Home Equity Rapid Refinance is referred to as a “lower cost solution than a traditional fixed rate mortgage,” though they also say you can enjoy fixed payments for up to 30 years.
It’s somewhat unclear what it actually is, though it sounds kind of like a cash out refinance with limited closing costs. One twist is it seems to be a home equity loan that is in the first position (not subordinate), an important detail if you were to get foreclosed upon.
Anyway, a home appraisal fee isn’t required in many cases, and they allow LTVs as high as 84.9% with no private mortgage insurance. It sounds like a weird take on a home equity loan.
PNC Mortgage Rates Seem Competitive
PNC Mortgage openly advertises its mortgage rates
Which not all home loan lenders tend to do
They appear to be quite competitive relative to other lenders
But note that they often assume a 70-80% LTV ratio among other things
Speaking of interest rates, let’s talk about the rates at PNC Mortgage. First off, kudos to them for advertising their mortgage rates. Not all mortgage companies do.
My first impression – they’re quite competitive, but as always, we have to consider the assumptions they make. And they make some pretty big ones.
For conforming loan amounts, they assume you’re putting down 20% of the home purchase price, or that you have 20% equity in your home. Plenty of homeowners put down less when buying and/or have less equity.
They also expect you to have excellent credit, defined as a 740-credit score, and presume the property is a one-unit single-family home.
When it comes to jumbo loans, they make the same assumptions but base pricing on a 30% down payment, or 70% LTV.
While this isn’t uncommon (most lenders do this), you do have to pay attention to the assumptions to ensure you aren’t disappointed when you receive your actual rate quote.
Also take note of the lock period, which might be 30 or 60 days. If you accept a lower lock period you might be able to obtain an even lower mortgage rate.
PNC Mortgage Reviews
If their mortgage rates and closing costs are competitive by all means consider them
They also recently launched a digital home loan process powered by Blend
And they offer a free biweekly payment service and relationship discounts
But their reviews are a bit mixed so be sure to do your research
It’s hard to get super excited about going to a big, old bank to get a home loan.
But PNC Mortgage recently launched a revamped digital mortgage process backed by fintech company Blend in September 2022.
They also offer relationship discounts on their mortgage rates and home equity offerings, along with a free biweekly mortgage payment service.
However, they’re a little late to the party seeing that other major players, such as Rocket Mortgage from Quicken, and the digital offerings provided by the likes of Bank of America and Chase, have been around for years.
Maybe PNC can offer lower mortgage rates than the competition, which is certainly enough to choose them over another lender, but there doesn’t seem to be much else to talk about here.
They have their “Home Insight Planner,” which features some mortgage calculators and lets you generate home affordability scenarios, but it seems a bit clunky and not all that revolutionary.
They do service a lot of mortgages, so it’s possible you might actually be making your mortgage payments out to PNC if you get your home loan with them. This can be a plus if you’re sick of your mortgage loan being sold and transferred over and over.
But until PNC Mortgage does more to separate themselves from the crowd, they likely won’t attract many clients outside their existing customer base, especially as more disruptors emerge to shake up the scene.
Lastly, while they do have an ‘A+’ rating from the Better Business Bureau (BBB), many of their reviews are pretty low.
For example, they’ve got a 1.12/5 rating on the BBB website from reviews, a 1.3/5 on Trustpilot, and a 3.7/5 on WalletHub.
The one bright spot is Zillow, where they enjoy a 4.95/5, with most reviews likely more aligned with their home loan business than overall banking services.
If that’s the case, PNC could be a good choice among other mortgage companies out there.
PNC Mortgage Pros and Cons
The Good Stuff
Offer a digital mortgage process powered by Blend
Can apply for a home loan online, in-person, or by phone
Openly advertise their mortgage rates online
Relationship discounts for existing customers
Lots of loan programs to choose from including jumbos and home equity loans/lines
Licensed to do business nationwide
They service their own loans
A+ BBB rating
The Maybe Not
As a big bank they might be overly bureaucratic/slow
Mortgage refinancing gives homeowners flexibility as their financial circumstances and needs change.
When you refinance your mortgage, you may be able to lock in a lower interest rate and get rid of private mortgage insurance, which can lead to significant savings over the life of the loan. It also allows you to switch from an adjustable-rate mortgage to a fixed-rate mortgage (and vice versa) or go from a government-backed loan to a conventional loan.
You can even shorten your loan terms by refinancing your mortgage, so you can pay off your loan even faster. Or, you can use refinancing to tap into the equity in your home to pay off debt, pay for a huge renovation or purchase another property.
CNBC Select evaluated home loan lenders based on the types of loans offered, customer support and minimum down payment amount, among others (see our methodology below).
The best mortgage refinance lenders
Best for cashing out full equity
Rocket Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA Interest Rate Reduction Refinance Loan (IRRRL) and jumbo loans
Fixed-rate Terms
8 – 29 years
Adjustable-rate Terms
Not disclosed
Credit needed
580 if opting for FHA loan refinance or VA IRRRL; 620 for a conventional loan refinance
Pros
Can use the loan to refinance a single-family home, second home or investment property, or condo
Can get pre-qualified in minutes
Rocket Mortgage app for easy access to your account
Allows borrowers to cash out 100% of their home’s equity
Cons
Doesn’t offer USDA loans, HELOCs, construction loans, or mortgages for mobile homes
Rocket Mortgage is a great option to consider if you’re looking to maximize the equity you can cash out of your home.
One of the advantages of refinancing is being able to tap into your home’s equity to pay for large expenses, like home improvements or a second property, or to consolidate debt. This is called a cash-out refinance. The total amount you’re able to borrow will depend on your home’s value and equity.
Most lenders only allow homeowners to cash out 80–90% of their home’s equity. But according to its website, Rocket Mortgage allows borrowers who are refinancing to cash out 100% of their equity, as long as they have a minimum FICO score of 620. This means you’ll have access to more cash when you refinance. Rocket Mortgage also offers a fast, online pre-approval process.
Best for no lender fees
Ally Home
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Fixed-rate, adjustable-rate and jumbo loans available
Fixed-rate Terms
15 – 30 years
Adjustable-rate Terms
5/6 ARM, 7/6 ARM, 10/6 ARM
Credit needed
Not disclosed
Pros
Doesn’t charge lender fees (no application, origination, processing, or underwriting fees)
Provides custom quotes in just a few minutes with no impact to your credit score
Online support available
Existing Ally customers can receive a discount that gets applied to closing costs
Cash-out refinancing available
Cons
Doesn’t offer FHA loans, USDA loans, VA loans or HELOCs, however, Ally allows borrowers to refinance from an FHA, USDA, or VA loan to a conventional loan
Mortgage loans are not available in Hawaii, Nevada, New Hampshire, or New York
As with its home purchase loans, Ally Bank’s mortgage refinances don’t come with lender fees. In other words, borrowers won’t pay application, origination, processing, or underwriting fees. Keep in mind, however, that you’ll still have to pay other charges like title checks and appraisal fees. Still, cutting lender fees out of the equation still gives borrowers a chance to save some money on an already-expensive process.
Ally offers both fixed-rate and adjustable-rate loans in addition to jumbo loans for refinancing. While this lender doesn’t offer any FHA, VA, or USDA loans, borrowers who currently have these loan types and wish to refinance to a conventional loan may do so through Ally Bank.
Best for a no-frills lender
Better.com Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loan, FHA loan and jumbo loan
Fixed-rate Terms
15–30 years
Adjustable-rate Terms
Not disclosed
Credit needed
Not disclosed
Pros
No origination fee
No prepayment penalties for refinance
Receive a loan estimate in as little as 3 days
The Better Buying Guarantee provides up to $3,500 in lender paid credits to offset “covered fees,” which include: Lender’s Title Insurance Policy Fees; Owner’s Title Insurance Policy Fees; Appraisal Fees (includes second appraisal fee, appraisal re-inspection fee and appraisal recertification fee, if applicable); Flood Certification Fees; Credit Report Fees; and Other Settlement Fees (discount points are excluded)
Cons
Doesn’t offer VA loans or USDA loans
The Better Buying Guarantee is not available in Washington state
Better.com offers a straightforward refinance service with a few ways for borrowers to save money. This lender doesn’t charge any origination fees on the loan, and individuals who are refinancing their mortgage won’t be charged prepayment penalties for paying off the new loan early. Its pre-approval process can be completed in as little as three minutes and won’t impact your credit score.
This lender also offers a Better Buying Guarantee, which provides borrowers with up to $3,500 in lender-paid credits to offset “covered fees.” Those fees include: Lender’s Title Insurance Policy Fees; Owner’s Title Insurance Policy Fees; Appraisal Fees (includes second appraisal fee, appraisal re-inspection fee and appraisal recertification fee, if applicable); Flood Certification Fees; Credit Report Fees; and Other Settlement Fees (discount points are excluded). See their Terms and Conditions for rules around eligibility.
Better.com offers mortgage refinance terms that range from 15 to 30 years, and boasts the ability to provide potential borrowers with a loan estimate in as little as three days.
Best for saving money
SoFi Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans and jumbo loans
Fixed-rate Terms
10 – 30 years
Adjustable-rate Terms
Not disclosed
Credit needed
Pros
Provides access to Mortgage Loan Officers for guidance
Access to account via the mobile app
Members save $500 on processing fees for a cash-out refinance
Cons
Doesn’t offer FHA, VA or USDA loans
Available in all states except Hawaii
SoFi is known for offering a plethora of savings opportunities to members who use their financial products and services. When it comes to mortgage refinancing, this lender gives members the opportunity to save $500 on the loan processing fee as long as they also have a SoFi Personal Loan, SoFi Student Loan or have a minimum balance of $50,000 in their SoFi Invest accounts at the time of their application submission.
Mortgage refinance terms range from 10 years to 30 years, and SoFi offers an app to help customers have easy access to managing their account details.
Best for availability
PNC Bank Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Fixed-rate, adjustable-rate, FHA loans, VA loans and jumbo loans
Fixed-rate Terms
10 – 30 years
Adjustable-rate Terms
Available in periods of 7 and 10 years for a fixed rate, followed by an adjustment period when the interest rate may increase or decrease on an annual or semi-annual basis
Credit needed
Not disclosed
Pros
Refinance available for primary and secondary homes, and investment properties
Offers a wide variety of loans to suit an array of customer needs
Offers refinancing for VA and FHA loans
Available in all 50 states
Online and in-person service available
Cons
Doesn’t offer home renovation loans
PNC Bank is one of the most accessible lenders on this list since it provides services and mortgage products in all 50 states — both in-person and online. This lender offers fixed-rate loan terms that range from 10 years to 30 years. For jumbo loans, though, the loan terms go from 15 years to 30 years. Adjustable-rate terms are also available.
To make sure you’re fully prepared to begin the application process, PNC Bank has an application checklist on their website that lists all of the documents you’ll need if you want to refinance your mortgage.
Best for a credit union
PenFed Credit Union Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Rate-and-term refinance (for conventional, FHA and VA refinances), VA Interest Rate Reduction Loan (IRRRL), cash-out refinance, home equity line of credit (HELOC)
Fixed-rate Terms
Not disclosed
Adjustable-rate Terms
Credit needed
Not disclosed
Pros
Covers cost of VA funding fees, title fees, recording fees, transfer taxes, appraisal fee, credit report and flood certification where applicable
Offers jumbo loan refinance up to $3 million
Online support available
Available in all 50 states
Cons
Doesn’t offer USDA loans
Doesn’t offer adjustable-rate terms
PenFed cuts out some major closing costs for homeowners looking to refinance their mortgage. It will cover the cost of VA funding fees, title fees, recording fees, transfer taxes, appraisal fee, credit report and flood certification wherever applicable. This could save borrowers anywhere from hundreds to thousands of dollars in closing costs.
Of course, you’ll want to make sure you have a PenFed membership in order to apply for this lender’s mortgage products. Membership is open to everyone but you’ll need to open a savings account and make an initial deposit of at least $5.
FAQs
What do you need to refinance your mortgage?
As with any other line of credit, mortgage refinancing requires a decent credit score. Lenders typically like to see a minimum credit score of 620 or higher. The higher your credit score, the more likely you are to be qualified for a lower mortgage interest rate. Borrowers should also have at least 20% equity in their home in order to refinance. You’ll also need to provide documents, such as bank statements, pay stubs, W-2s, 1099s, tax returns, employment verification and proof of homeowner’s insurance.
How do you refinance your mortgage?
To refinance your mortgage, you’ll want to make sure you have all the required financial documents and meet your desired lender’s qualifications. You’ll use this information to submit an application (either online or in-person, depending on the lender you’d like to go with). Lenders typically also offer the help of mortgage refinance experts who can walk you through the process, answer any questions you have and make sure you submit a complete application.
How often can you refinance your mortgage?
There is no limit on the number of times you can refinance a home loan. Refinancing can be valuable when your circumstances change. For instance, if you were to change careers and take a pay cut, refinancing into a mortgage with a longer loan term would allow you to receive lower monthly payments.
Just be aware that refinancing is not free and every time you refinance, you’ll have to pay a slew of closing costs and other fees, and your credit score could take a hit every time the lender runs a hard inquiry.
What are the different types of mortgage refinances?
A rate-and-term refinance is one of the most common types of mortgage refinancing since it involves simply changing the loan term (how long you have to repay the balance) or the interest rate.
Borrowers can also do a cash-out refinance where the borrower takes out a loan that’s larger than what they currently owe and can use the difference between the two loans to receive cash. Borrowers can then use that cash for a large expense, a down payment on another property, debt consolidation and more.
As the name suggests, FHA Streamline Refinance is meant for borrowers who are looking to refinance their FHA loan. A VA Streamline Refinance is similar except it’s meant for VA loan borrowers.
Does refinancing hurt your credit?
As with any other form of credit you apply for, applying for a mortgage refinance means the lender will run a hard inquiry on your credit. Hard pulls do temporarily lower your credit score by a few points. However, making on-time monthly payments and avoiding applying for too many new lines of credit all at once can help your credit score recover.
Reasons not to refinance your mortgage
Refinancing isn’t for everyone. If you already have a low, fixed interest rate with affordable monthly payments, refinancing your mortgage might not save you money. In fact, due to closing costs, refinancing can actually wind up costing you more than you anticipated.
You should also avoid refinancing if you have bad or fair credit since you could end up with a higher interest rate, which will make the loan even more expensive.
It’s also not a good idea to refinance if you’re already several years into a mortgage. Refinancing essentially replaces your loan with a new one and you’ll have to start all over with payments. So if you’re already, say, 15 years into a 30-year mortgage, refinancing to another 30-year mortgage means you’ll still be on the hook with the mortgage for another 30 years.
Bottom line
Refinancing can be instrumental for those who want to have lower monthly payments or a lower interest rate, or want to tap into some of the cash in their home. Just make sure you run the numbers so you can be sure they make sense for your situation, since there are some instances when refinancing may not be a good idea.
Our methodology
To determine which mortgage lenders are the best, CNBC Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best mortgages, we focused on the following features:
Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you’ll lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. Lenders may also offer USDA loans and jumbo loans. Having more options available means the lender can to cater to a wider range of applicants. We’ve also considered loans that would suit the needs of borrowers who plan to purchase their second home or a rental property.
Closing timeline: The lenders on our list are able to offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances where a lender does.
Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early.
Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount.
After reviewing the above features, we sorted our recommendations by best for overall financing needs, quick closing timeline, lower interest rates and flexible terms.
Note that the rates and fee structures advertised for mortgage refinances are subject to fluctuate in accordance with the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee your interest rate and monthly payment remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
